Artumas Group Inc. (OSE: AGI) ("Artumas" or the "Corporation") today releases its interim First Quarter 2008 Financial Statements and Management's Discussion and Analysis. The full Financial Statements and MD&A are attached herein.
Due to the recent presentation in Oslo, Norway on May 15, 2008 in which 1Q preliminary numbers were presented by Artumas Group Inc. executives, the Corporation will not be holding a webcast of these quarterly results. Shareholders are invited to view the archived webcast of May 15, 2008 on www.artumas.com.
Financial Highlights:
Capital Expenditures: First Quarter 2008
Total capital expenditures during the period were $11.0 million for the three months ended March 31, 2008 (2007: $20.5 million). The first quarter was characterized by seismic programs in both Tanzania and Mozambique with the aim of further quantifying the exploration potential of the Company's resource base. The focus of capital investment in the first quarter of 2008 has been on the seismic program in Mozambique ($5.4 million) including $2.4 million on the Offshore Area One Block (8.5% participating interest) and $3.0 million on the Rovuma Onshore Block (net of Anadarko's participating interest).
Operating and Overhead expenditures
Operating expenses were $4.0 million for the three months ended March 31, 2008 (2007: $0.1 million). Operating expenses related to the power operation which was commissioned for commercial operations on March 5, 2007 were $1.1 million (2007: $0.1 million). Gas related operating expenses of $2.9 million are high relative to throughput volumes due to limited gas production which does not allow economies of scale to be achieved. Artumas is in the pre-production stage of its Projects as it relates to its gas activities.
There are two main factors driving the increase in general and administrative expenses;
1) Increased Project Activity
In accordance with its accounting policies the Company does not capitalize general and administrative costs related to project activities. As such, seismic programs in both Tanzania and Mozambique have substantially increased G&A over the previous year. In addition the company's efforts related to businesses development initiatives of CNG and the 300MW power project have had a similar impact.
2) Developing a sustainable staff complement
The company has built a strong foundation of professional and operating staff capable of supporting future challenges. Further, the Company has retained a number of consultants and professionals to supplement its experienced staff to meet these challenges. As work levels normalize and projects are completed (or transferred to strategic partners), consultants retained to overcome these peak activities will no longer be required and associated costs such as travel will be reduced.
Financial Condition/Liquidity
At March 31, 2008 Artumas had cash and term deposits of $124.3 million. This consists of $12 million of cash on deposit and $112.3 million invested in short-term guaranteed investment certificates. Of these $21.7 million are held in Canadian funds and $90.6 million are held in US funds.
Looking through into 2009, additional funds required for exploration and development activities, including drilling, are anticipated to be through farm-out of asset holdings and strategic partnerships.
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For further information, please contact: www.artumas.com
www.artumas.tv
Stephen W. Mason, President and CEO +44 784 137 3695
Cameron Barton, Chief Financial Officer +1 403 268 6511
Wendy Shaw, Director Investor Relations +1 403 268 6518
